South Korea’s manufacturing sector accounted for only 15.5% of total employment during the first four months of 2025, marking its lowest level since records began, according to Statistics Korea. The decline continues a post-pandemic trend, with the sector’s employment share having fallen below 16% for the first time in 2023 and continuing to decline on a monthly basis this year. In April alone, manufacturing employment contracted by 124,000 jobs — the steepest monthly decline since Feb. 2019.

This drop in employment comes despite a rebound in manufacturing output, which rose 4.4% in 2024 and showed growth in all four quarters in GDP terms. Contributing factors include a recovery led primarily by the semiconductor industry, which has a relatively low employment multiplier, and companies delaying hiring amid persistent global uncertainty.